Page 32 - Issue 9

Nelson Mandela was the first African Macroeconomic performance and revenue shortfalls due to slow economic
President of South Africa, and the outlook growth. The tax revenue-to-GDP ratio
current president is Cyril Ramaphosa. According to the Africa Development declined marginally to 25.7% in 2019
Othe others are Thabo Mbeki Bank, South Africa’s real GDP grew at an from 25.9% in 2018. The fiscal deficit
1999 –2008), Jacob Zuma(2009 -2018). estimated 0.7% in 2019, down from 0.8% is financed through domestic capital
Kgalema Petrus Motlanthe hd a short in 2018, and is projected to rise to 1.1% markets. National government debt was
stint(2008-2009) , Mandela became in 2020 and 1.8% in 2021 amid domestic estimated at 55.6% of GDP in 2019, up
president in May 1094. and global downside risks. Contraction from 52.7% in 2018.
South Africans are passionate beer in agriculture and mining drove slow Foreign debt accounted for only 6.3%
drinkers and the sorghum-based Maheu growth in 2019. Agriculture contracted of GDP, ensuring sustainable debt
is by far the most popular brand. In 4.8% and mining 1.7% in 2018. financing. The current account deficit
addition, the Western Cape vineyards Besides erratic weather, a protracted widened to 3.5% in 2018, as the terms
produce some excellent wines, including debate about land reform weighed on of trade deteriorated, with rand prices
Pinotage, a deep fruity blend of the agriculture. Electricity shortages and of imports increasing more than those
pinot noir and hermitage grapes which prolonged strikes contributed to the of exports. The current account deficit
is unique to South Africa. mining decline. The finance, real estate, was financed primarily through foreign
With its diverse geography, direct investment
wildlife and temperate climate, inflows, which
outdoor pursuits make up the grew 163% in 2018
most popular activities in South compared with 2017.
Africa. The country is home to U n em p lo y m en t
a number of wildlife reserves, increased to 27.1%
where the ‘Big Five’ (Lion, at end 2018 from
Elephant, Buffalo, Leopard and 26.5% at end 2016.
Rhino) can be observed on Youth unemployment
safari, or there is Great White increased to 54.7%
shark cage-diving and bungee- at end 2018 from
jumping from the country’s 51% at end 2016.
numerous gorges for the more Among the causes of
adventurous. high unemployment
South Africa has 11 official are low skills. South
languages with geographical Africa’s poverty rate
variations in each. The most President Cyril Ramaphosa was 55.5%, and its
widely spoken languages are Zulu, inequality is among the world’s highest.
Xhosa, Afrikaans (a derivative of Dutch) Economic experts observe that the
and English. The African National and business services sector grew 1.8% economy likely slipped into recession
Congress (ANC) promotes English in 2018 to contribute 0.4 percentage in the first quarter. Supply-side activity
as the main language of government, point to growth. Transport grew 1.6% collapsed due to troubles at the state-
although indigenous languages are still in 2018 while manufacturing grew 1% owned utilities provider Eskom;
widely used in commerce and inter- in 2018. Manufacturing production manufacturing output contracted in
province relations. Different languages was depressed by frequent electricity January–February; and the Covid-19
are attributed to ancestral tribal areas, shortages, higher input prices, and weak related lockdown measures hammered
for instance Zulu is mainly spoken by demand amid ongoing international domestic demand in March.
the Bantu people, who make up the trade tensions.
largest ethnic group in South Africa. Household and government Turning to the second quarter, the
With so many languages being spoken consumption remained a key driver of economic panorama has deteriorated
in one country, there are variations in growth, contributing 1.5 percentage even further. Strict containment
the accent and dialects of each. There is points in 2018. Inflation was 4.7% in 2018 measures will be hammering investment
also social and geographical variation in and 4.4% in 2019, due to lower fuel costs. activity and private spending, with
South African English, which is spoken From November 2017 to November business confidence and the PMI diving
by many in urban areas and has been 2018, the real exchange rate increased to their respective record lows in April,
adapted to suit each community. 8.1%, eroding the competitiveness while the unemployment rate seems to
How English is spoken is considered of South African exports. The rand have surged.
an indicator of class and social traded at 13.23 per dollar in 2018. Due Against this backdrop, the government
status in South Africa, for instance, to inflation targeting, the exchange announced an aid package of up to USD
middle to upper classes speak with a rate pass-through to inflation has been 26.0 billion—about 10.0% of GDP—to
cultivated English based on Received limited. support businesses and protect jobs and
Pronunciation whereas in more boost the welfare system. Authorities are
impoverished areas there exists a ‘post- The fiscal deficit remained high at an set to ease the nationwide lockdown by
creole’ English dialect, which is often estimated 4.3% in 2019, up from 4.2% 1 June, which should give the economy a
mixed with other languages. in 2018, as the country continued to face much-needed respite.

32 | The Nile Explorer 009